Earnings season is the heartbeat of the market - and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the top beats from the S&P 500 π
*Click the image to enlarge it
At the top of Friday's list was Church & Dwight $CHD, the $21B producer of Trojan condoms. The company beat expectations, and the market rewarded shareholders with a +4.93 reaction score.
It was the best earnings reaction since 2018...
In the report, they posted revenues of $1.59B, above the expected $1.53B, and earnings per share were $0.81, above the expected $0.74.
Coming in second place was the $2.6T tech behemoth Amazon $AMZN. The company smashed its headline expectations and had a reaction score of +4.05.
Revenues came in at $180.17B, compared to the expected $177.91B, and earnings per share beat by nearly 50 cents.
Here are the bottom beats from the S&P 500 π
At the bottom of Friday's list was the $23B medical devices stock, DexCom $DXCM. The company beat expectations across the board, but suffered a -6.73 reaction score.
They reported revenues of $1.21B, above the expected $1.18B, and earnings per share of $0.61, above the expected $0.58.
And we'd be remiss not to mention the world's largest consumer electronics stock: Apple $AAPL. Despite beating the headline expectations, shareholders suffered a -0.54 reaction score.
Revenues and earnings per share came in slightly above expectations, but the stock fell for the fifth consecutive time after an earnings event.
Now let's dive into the fundamentals and technicals π
AMZN snapped a five-quarter beatdown streak π₯
Amazon had a +9.6% post-earnings reaction, and here's what happened:
The top and bottom lines increased year-over-year by 13% and 38%, respectively.
AWS sales increased 20% year-over-year to $33B.
In addition to the excellent report, the management team raised its capital expenditure guidance. This is what the market wanted to see!
Not only did this earnings report snap a five-quarter streak of being punished for earnings, but it was also a textbook gap-n-go. In other words, it was the decisive resolution of a prolonged accumulation pattern.
This was also the best earnings reaction we've seen since 2022.
While the stock has been a laggard relative to its Magnificent 7 peers recently, we believe this was the catalyst to spark a massive catch-up trade.
So long as AMZN is above 242, the path of least resistance will likely remain higher for the foreseeable future.
DXCM has been punished for six of its last eight earnings reports π»
DexCom had a -14.6% post-earnings reaction, and here's what happened:
Revenues increased by 22% year-over-year, and net income more than doubled over the same period.
Their market share is increasing, and new products are being launched.
Adding to the strong report, the management team increased its forward guidance.
Everything above this report was good, but the market wanted nothing to do with it. It was a textbook beat/beat/drop.
What do investors know?
Based on the consistent negative earnings reaction, the company's fundamentals have been deteriorating over the past two years.
Now, the stock is on the cusp of resolving a massive distribution pattern. A breakdown from here would ignite a fresh batch of selling pressure.
If and when DXCM closes below 58, the path of least resistance will shift from sideways to lower for the foreseeable future.
Happy Monday
-The Beat Team
P.S. The traders using the VWAP script are seeing the setups the rest of the market misses.
